President of the Russian Vladimir Putin bans the use of digital assets for payments

President of the Russian Federation Vladimir Putin has signed a bill banning the use of cryptocurrencies for payments. The ban comes after the Russian government and the Bank of Russia clashed over how cryptocurrencies should be regulated.

Vladimir Putin banned the use of crypto for payments

In January this year, the Bank of Russia proposed a complete ban on cryptocurrencies. The company has said that crypto assets should not be used for payment or investment. Not all government ministries supported the ban.

Shortly after the Bank of Russia proposed a blanket ban on crypto, the Ministry of Finance in Russia proposed regulating, not banning, cryptocurrencies. The ministry submitted a draft that talks about crypto regulations.

The ban signed by President Putin takes note of the sentiments of the central bank and the Ministry of Finance. The new law will ban the use of cryptocurrencies to purchase goods and services in Russia. However, the Russians have not prohibited the use of digital assets such as Bitcoin and Ethereum for investments.

A newly signed law was released on that day Website The Russian parliament, and according to the translation, it states that the exchange or acceptance of cryptocurrencies as payments for goods and services rendered will be prohibited.

Russia continues to dominate the cryptocurrency space, both in terms of trading and mining. At the start of the Russian invasion of Ukraine earlier this year, Russia came under scrutiny as many Western countries believed the country might turn to cryptocurrencies to avoid economic sanctions.

Some of the leading companies in the crypto space, including Binance and Coinbase, have announced that they are complying with laws set by the United States and the European Union. The laws imposed restrictions on Russian individuals and companies using cryptocurrency exchanges.

Crypto regulations in Russia

Cryptocurrency regulations in Russia are still complicated. Bank of Russia advocates a ban on Bitcoin mining and crypto transactions However, the finance ministry said it is essential to support the development of crypto technology.

The president has also shown interest in Bitcoin mining. Earlier this year, President Putin said that “certain competitive advantages” came from cryptocurrency mining operations. Such benefits include the utilization of surplus electricity and the employment of a well-trained workforce in the country. This growth comes as the Bitcoin price has a support level of $20,000.

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